Insights

Increasingly more jurisdictions are imposing regulatory requirements on product materials and product sourcing, which increases and complicates the compliance pathway for many companies. Some jurisdictions are imposing mandatory disclosure and due diligence requirements relating to sustainability, human rights, and responsible sourcing—requirements that have cross-border implications for companies with global supply chains. For example, in 2021, the United States enacted the Uyghur Forced Labor Prevention Act, which is aimed at preventing goods made with forced labor from entering the United States. At the same time, U.S. state and federal governments are imposing material restrictions on products, which are intended to reduce exposure to certain materials, such as Washington State’s Safer Products for Washington law. This law prohibits or limits the use of certain materials in certain products, which can impact product design, sourcing, and availability, as well as disclosures. Jurisdictional differences add yet another layer of complexity, making it vital for companies with global supply chains to understand these different requirements and how they intersect. Attendees will gain a better understanding of the current and future landscape of supply chain due diligence requirements and material restrictions regulations, how these two regulatory schemes interact, and how to navigate compliance with different requirements.

Coming off of the hottest year on record, policymaking and enforcement are becoming increasingly important in our country’s ongoing quest to balance environmental protection with consumer and industry interests. The infrastructure legislation and the Inflation Reduction Act of 2022 are both seen as major steps forward for U.S. federal climate law and our efforts to reduce emissions. On the heels of those bills have been a series of pieces of guidance – related both to the implementation of those bills as well as agency guidance, including the SEC’s finalized climate disclosure rule.